Service Properties Pays $165M For Miami Beach’s Nautilus Hotel
Service Properties Trust dropped $164.5 million to acquire Miami Beach’s Nautilus Hotel.
The Newton, Massachusetts-based Real Estate Investment Trust, or REIT, paid about $661,000 per key for the 250-room Art Deco oceanfront property, a press release states. Completed in 1950, the eight-story building at 1825 Collins Avenue was designed by Morris Lapidus. The late architect also designed the Fontainebleau Miami Beach and the Eden Roc Miami Beach resorts.
A CBRE team led by Paul Weimer and Christian Charre represented the seller, Quadrum Global, the release states. Quadrum, a United Kingdom-based real estate investment firm led by CEO Oleg Pavlov, paid $61 million for the Nautilus in 2011.
Previously flying under Quadrum’s Arlo hotel brand, the Nautilus will now be operated and managed by Sonesta, which oversees all of Service Properties’ 262 hotels in the U.S. and Canada, the release states. The property has also been renamed Nautilus Sonesta Miami Beach.
The Nautilus also has 17,500 square feet of outdoor and indoor event space. Service Properties plans a $25 million renovation of the hotel that is expected to begin next year. In early 2025, the Nautilus will be rechristened under Sonesta’s The James brand, the release states.
Service Properties has a portfolio of hotels and retail net lease properties north of $11 billion, the release states.
The Nautilus is next door to the Shelborne Hotel, which is also undergoing renovations by its owners, King Street Real Estate GP, Westdale Properties and Cedar Capital Partners.
Miami Beach hotels are a hot asset among hospitality real estate investors. In February, New York-based Blue Suede Hospitality paid $26.5 million for the South Beach Plaza Hotel at 1401 Collins Avenue and The South Beach Plaza Villas at 1411 Collins Avenue.
Last year, Boston-based Spot On Ventures acquired the Hampton by Hilton at The Continental at 4000 Collins Avenue. Also last year, a company linked to the “vulture” hedge fund Alden Global Capital paid $6 million for the Villa Paradiso hotel at 1415 Collins Avenue.
